UK 'preparing for all eventualities', says Starmer as nation braces for Trump's 'Liberation Day' tariffs
2 April 2025, 12:24 | Updated: 2 April 2025, 13:43
The UK is 'preparing for all eventualities,' Sir Keir Starmer has claimed as governments around the world brace for Trump's 'Liberation Day' tariff announcement.
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Speaking during PMQs on Wednesday, the Prime Minister said he was not ruling anything out where UK responses to possible tariffs are concerned.
It comes as the world woke up on April 2 to the idea of levies, on what Trump has branded 'Liberation Day' for the USA.
Late on Tuesday, the White House declared the date “one of the most important days in American history”, with Trump saying he was "open to calls" from world leaders ahead of his announcement.
Speaking from the Commons, Sir Keir said: “We have been preparing for all eventualities ahead of the confirmation of US tariffs later today.
“Let me be clear with the House. A trade war is in nobody’s interests and the country deserves, and we will take, a calm, pragmatic approach.
“That is why constructive talks are progressing to agree a wider economic prosperity deal with the US. That is why we are working with all industries and sectors likely to be impacted.
“Our decisions will always be guided by our national interest and that is why we have prepared for all eventualities and we will rule nothing out.”
It was a Commons exchange that saw Kemi Badenoch accuse Sir Keir Starmer of a “failure to negotiate” a trade deal with the US.
The Tory leader continued her questioning, pushing the PM on how protect UK car manufacturers from the impact of tariffs.
It follows confirmation from Sir Keir Starmer that the UK will be hit with US tariffs, despite talks of a trade deal between the two countries.
On Wednesday, the UK's FTSE 100 fell slightly in anticipation of Mr Trump's announcement due at 9pm.
The car industry has already learned its fate, with a 25% tariff on vehicles sent to the US - something which could cost an estimated 25,000 jobs in the UK.
Intensive diplomatic efforts and negotiations on a UK-US economic deal are not expected to be enough to spare British exporters from Mr Trump's tariff plans.
On Tuesday, the PM failed to rule out cutting the Digital Services Tax on big tech companies - a measure which has the potential to allow the UK to dodge US tariffs.
Sir Keir Starmer said: “It is an important issue and there are issues in relation to Northern Ireland in particular that we have to deal with very carefully.
“We will always put the national interest first and that is why I am pleased that talks are ongoing and they are constructive talks.
“I do believe that a trade war is in nobody’s interest and all of the sectors and industries impacted are of the same view so we will continue to make that progress in the national interest.”
Recent weeks have seen Trump repeatedly promise to impose reciprocal dollar-for-dollar tariffs against nations that tax US goods.
Speaking from the White House on Tuesday, Trump press secretary Karoline Leavitt described tomorrow as “one of the most important days in American history.”
"Our country has been one of the most open economies in the world, and we have... hands down, the best consumer base," she said.
"But too many foreign countries have their markets closed to our exports. This is fundamentally unfair.
